Autor(es): Ferreira, Flávio ; Ferreira, Fernanda A. ; Fernandes, Paula Odete
Data: 2022
Identificador Persistente: http://hdl.handle.net/10198/27615
Origem: Biblioteca Digital do IPB
Assunto(s): Pollution abatement; Commitment; Environmental policy; Consumer-friendly hotel
This paper highlights the effects of corporate social responsibility (CSR) on the strategic choice of pollution abatement and on the timing of the government’s commitment to the environmental tax policy, in the hotel industry. To do this, we consider a competition between one consumer-friendly hotel and one for-profit hotel, and two policy regimes (commitment and non-commitment), with two different timings of the government’s decision about environmental taxation. Hotels choose pollution abatement investments sequentially and outputs simultaneously. We show that with a high degree of consumer-friendliness, the committed environmental tax is lower than the non-committed one. We also show that although the environmental damage may be less under the non-committed policy regime, social welfare is always better under the committed policy regime. In addition, we examine the changes in the degree of CSR on the equilibrium results.
